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by Alan Alper, MA Editorial Staff Posted on Friday, May 26, 2006 4:53:00 PM   Looking to give RFID adoption a jolt amid concern that early enthusiasm has dissipated, a blue-chip vendor group has banded together to help consumer products suppliers and retailers test the technology's ability to deliver measurable return on investment (ROI) within a controlled environment -- the promotional display. Why promotions? Consumer Packaged Goods (CPG) companies spend a lot of money on them. In fact, trade promotions are said to drive 12% to 15% of sales for major CPG companies, according to a study by ACNielsen. Yet, given the dollars and efforts expended, the returns yielded by promotions remain below expectations, the study contends. One key reason: a lack of retailer follow-through. A recent Massachusetts Institute of Technology (MIT) study found that slightly more than half of supplier promotions are carried out by retailers nationwide. The problem is store-level resource constraints -- including both people and processes -- limit the ability of retailers to efficiently get goods from the backroom and onto promotional displays. Retailers also struggle with synchronizing product availability with promotional campaign timing (e.g., when buzz is generated by TV and radio adverts and newspaper circulars) and, just as importantly, with feedback that helps suppliers measure campaign effectiveness. [Click to continue] |